Answer:
the amount paid during the year is $16,875
Explanation:
The computation of the amount paid during the year is shown below:
Opening Balance $3,757
Add: Wages expense $15,188
Less: Closing Balance -$2,070
Amount Paid $16,875
Hence, the amount paid during the year is $16,875
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
$88,920
Explanation:
capitalized interest = weighted average accumulated expenditure for the year x interest rate of the loan = $889,200 x 10% = $88,920
Capitalized interest can be added to the basis of the new building that is being constructed. This way, the building's depreciable value will increase.
Answer:
Margin of safety=55.6%
Explanation:
The formula for the operating income is as folows;
operating income=Sales revenue-total cost
where;
operating income=$ 15,000
Sales revenue=S
total cost=variable cost+fixed cost
variable cost=70% of S=(70/100)×S=0.7 S
fixed cost=$12,000
replacing;
15,000=S-(0.7 S+12,000)
15,000+12,000=0.3 S
27,000=0.3 S
S=27,000/0.3
S=Answer:
Explanation:
The formula for the operating income is as follows;
operating income=Sales revenue-total cost
where;
operating income=$ 15,000
Sales revenue=S
total cost=variable cost+fixed cost
variable cost=70% of S=(70/100)×S=0.7 S
fixed cost=$12,000
replacing;
15,000=S-(0.7 S+12,000)
15,000+12,000=0.3 S
27,000=0.3 S
S=27,000/0.3
S=$90,000
Current sales=$90,000
The formula for margin of safety is as follows;
Margin of safety=(Current sales level-break even point sales level)/current sales levels
At break even,
Operating income=0
0=S-(0.7 S+12,000)
0=S-0.7 S-12,000
0.3 S=12,000
S=12,000/0.3
S=40,000
Break even sales=$40,000
replacing;
Margin of safety=((90,000-40,000)/90,000}×100
Margin of safety=55.6%
Answer:
Option (D) 16.57%
Explanation:
Data provided in the question:
Realized gain
r₁ = 20%
r₂ = 20%
r₃ = 10%
Now,
Geometric average = ![[(1+r_1)\times(1+r_2)\times...\times(1+r_n)]^{\frac{1}{n}}](https://tex.z-dn.net/?f=%5B%281%2Br_1%29%5Ctimes%281%2Br_2%29%5Ctimes...%5Ctimes%281%2Br_n%29%5D%5E%7B%5Cfrac%7B1%7D%7Bn%7D%7D)
- 1
here,
n = 3
therefore,
Geometric average = ![[(1+0.20)\times(1+0.20)\times(1+0.10)]^{\frac{1}{3}}](https://tex.z-dn.net/?f=%5B%281%2B0.20%29%5Ctimes%281%2B0.20%29%5Ctimes%281%2B0.10%29%5D%5E%7B%5Cfrac%7B1%7D%7B3%7D%7D)
- 1
or
Geometric average = ![[1.584]^{\frac{1}{3}}](https://tex.z-dn.net/?f=%5B1.584%5D%5E%7B%5Cfrac%7B1%7D%7B3%7D%7D)
- 1
or
Geometric average = 1.1657 - 1
or
Geometric average = 0.1657
= 0.1657 × 100%
= 16.57%
